PLEASE ANSWER THIS ONE: QUESTION 4. A
stock pays an annual dividend of 800 pesos per share. The stock is
trading at 35 000 pesos. Find the dividend yield.
***Important note: The attached picture is for guidance
purposes; it is a sample problem to help you solve the question
above and contains the expected method to be used in solving the question.
Please Answer This One Question 4 A Stock Pays An Annual Dividend Of 800 Pesos Per Share The Stock Is Trading At 35 0 1 (43.92 KiB) Viewed 15 times
Example: A stock pays an annual dividend of 80 pesos per share. The stock is trading at 3500 pesos. Find the dividend yield. Solution: Recall that I = Prt, (interest or annual dividend (I)=Principal or stock price (P) x rate (r) x time (t)). Given that I = 80, P = 3500 and t = 1, if we solve for r we 80 have r = = 0.02285 or 2.285%. So, the dividend yield is 2.285%. Pt 3500 (1)
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